Effect of Strategic Management Practices on Performance of Selected Mobile Service Providers in Nairobi- Kenya

Abstract

Mobile service providers offer essential services to business enterprises worldwide. Many businesses are adopting the use of mobile payments to boost the quality of their services and increase sales. The pace of transformation and competitiveness in the mobile sector demand that these providers evaluate their business strategies very often. The purpose of this study therefore was to examine the effect of strategic management practices on performance among mobile service providers in Nairobi Kenya. Specifically, the study examined the effect of strategic partnership strategies, channel management strategies, product diversification strategies and product development strategies on performance of mobile companies. The study adopted descriptive cross-sectional design. The study targeted key mobile network operators in Kenya, Safaricom, Airtel and Telkom Kenya (CCM 2019). The study population was 116. Descriptive and inferential statistics were used to analyze information generated from respondents. The study findings indicated that strategic partnership strategies had an influence on performance in the Mobile Services industry. The correlation analysis indicated a significant correlation existed (r = 0.771, p < 0.05). Pearson’s correlations coefficient was higher than 0.5 suggestion a strong relationship. There was a significant relationship between channel management strategies and performance as the analysis yielded a Pearson correlation coefficient of r = 0.706, p < 0.05; indicating that a strong relationship existed between the two variables. There was a significant relationship between product diversification and performance as indicated by the correlation analysis (r = 0.635, p<0.05) indicating a strong relationship between the two variables. There was a significant relationship between product development and performance as indicated by a Pearson correlations coefficient is (r = 0.610, p< 0.05). This indicated a strong relationship between the two variables. The coefficient of determination, R square was 0.688. This implies that 68.8 % of the variance in performance could be explained by Strategic partnership strategies; Channel management strategies; Product Diversification Strategies and Product Development Strategies. Based on the findings it was recommended for strategic partnership practices that through research, mobile service providers should seek to understand the gaps not yet bridged through current strategic partnerships entered into by mobile service operators, as well as exploring other services not yet offered through such partnerships in order to develop products to fill those gaps. On channel management it was recommended that mobile service providers invest more on their channels through training of their agents, and offering better incentives to their agencies to ensure improved uptake of agency in order to improve reach. On Product Diversification Strategies the study recommended that the players in the industry should find ways to maximize on product diversification through research, to identify additional market potentials, to properly adjust their pricing models, and understand their customer needs, and re-pricing their products. On Product Development Strategies it was recommended that the product development departments of mobile service providers should be tasked with development of products that have a shorter roll out period.